Mark Zuckerberg looks forward to holiday sales of Quest 3S
The upward trend in Quest hardware sales continues, but the biggest test will be the holiday season.
Meta has presented its financial results for the third quarter of 2024.
CFO Susan Li provided the following figures in a conference call with investors:
- Reality Labs' Q3 revenue was $270 million, up 29 percent year-over-year. According to Li, the revenue was primarily driven by hardware sales. These numbers continue the upward trend of the first and second quarters of 2024, which also showed year-over-year revenue growth, but do not exceed the numbers for 2021 and 2022.
- Expenditures for Reality Labs totaled $4.7 billion. If you subtract the revenue from the expenses, you get a loss of about $4.4 billion. This means that despite the upward trend, the XR division is still a huge money-losing business for Meta. Li reiterated, as she does in every quarterly earnings call, that Reality Labs' spending will continue to increase meaningfully.
The holiday season will be decisive
Mark Zuckerberg said in the conference call that the demand for Ray-Ban Meta Smart Glasses continues to be very strong, without giving any figures.
Regarding the Meta Quest 3S, which was launched on October 15, Zuckerberg said: "Reviews are great so far, and I'm looking forward to seeing how well it does this holiday season as more people get their hands on it."
Quest 3S sales are not included in the current financial report as the third quarter ended September 30. The results for the fourth quarter will provide an indication of the initial success of the low-cost headset. Only then will we see if Quest 3S can build on the success of Quest 2 and allow the VR ecosystem to grow significantly. Meta's VP of VR Mark Rabkin announced a few days ago that Quest 3S is bringing in the highest share of new Quest users since Quest 2.
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